Indirect Contribution of Investment Funds to the Financing Sector

In the name of Allah, the Most Gracious, the Most Merciful Saudi Arabian Monetary Authority Head Office

General Department for Supervision of Financing Companies

Ref No.: 391000057611 Date: 20/05/1439 AH Attachments:

Circular

Subject: Indirect Contribution of Investment Funds to the Financing Sector

Dear Sirs, Peace, mercy, and blessings of Allah be upon you,

Based on the authorities granted to the Authority under the Financing Companies Control System issued by Royal Decree No. M/51 dated 13/08/1433 AH, and in light of the Authority's contribution to economic development by enhancing the role of financing companies in supporting the national economy and diversifying their liquidity sources to achieve the objectives of Saudi Vision 2030.

Based on the ongoing coordination with the Capital Market Authority (CMA) and without prejudice to the provisions of the Financing Companies Control System and its Executive Regulations, we hereby inform you of the activities that financing companies may undertake with persons licensed by the CMA:

First: The ability to sell financing portfolios to investment funds. Second: The ability to enter into Loan Participation Agreements with investment funds to provide joint financing. Third: The ability for investment funds to invest amounts with financing companies, provided that the credit granting decision is made by the financing companies.

Yours sincerely,

Ahmed bin Abdullah Al Sheikh Deputy Governor for Supervision

Distribution Scope:

• Financing companies operating in the Kingdom

P.O. Box 2992, Riyadh 11169, Tel: +966 1 4662200, Fax: +966 1 4662488